Does US-China Trade War Matter on ASEAN Stock Market: Event-study Approach
The trade war between the US and China by imposing tariffs has the potential to affect global financial stability. As the largest economy in the world, the US and China had been trading goods and services globally. Then, when these countries have retaliated, the tariff war will affect the global su...
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| Format: | Article |
| Language: | English |
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Fakultas Ekonomi Universitas Sriwijaya
2020-09-01
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| Series: | Sriwijaya International Journal of Dynamic Economics and Business |
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| Online Access: | https://sijdeb.unsri.ac.id/index.php/SIJDEB/article/view/186 |
| _version_ | 1827330062428405760 |
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| author | Budi Setiawan |
| author_facet | Budi Setiawan |
| author_sort | Budi Setiawan |
| collection | DOAJ |
| description |
The trade war between the US and China by imposing tariffs has the potential to affect global financial stability. As the largest economy in the world, the US and China had been trading goods and services globally. Then, when these countries have retaliated, the tariff war will affect the global supply chain, international trade, economy, and the stock market. This research examined the effect of the US-China trade war on ASEAN stock prices using an event-study approach. The result shows that the ASEAN stock market has positive abnormal returns during pre-event period (12%). In contrast, ASEAN stock markets shifted to negative abnormal return (-7.4%) in the short-term window, indicating that the stock market is efficient. Stock price reflects the information from the market quickly. However, the impact of the trade war on the ASEAN stock market is insignificant.
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| first_indexed | 2024-03-07T15:59:59Z |
| format | Article |
| id | doaj.art-5efebef2bf59419199a01819564ae2f9 |
| institution | Directory Open Access Journal |
| issn | 2581-2904 2581-2912 |
| language | English |
| last_indexed | 2024-03-07T15:59:59Z |
| publishDate | 2020-09-01 |
| publisher | Fakultas Ekonomi Universitas Sriwijaya |
| record_format | Article |
| series | Sriwijaya International Journal of Dynamic Economics and Business |
| spelling | doaj.art-5efebef2bf59419199a01819564ae2f92024-03-04T21:53:52ZengFakultas Ekonomi Universitas SriwijayaSriwijaya International Journal of Dynamic Economics and Business2581-29042581-29122020-09-014310.29259/sijdeb.v4i3.161-74105Does US-China Trade War Matter on ASEAN Stock Market: Event-study ApproachBudi Setiawan0Universitas Indo Global Mandiri The trade war between the US and China by imposing tariffs has the potential to affect global financial stability. As the largest economy in the world, the US and China had been trading goods and services globally. Then, when these countries have retaliated, the tariff war will affect the global supply chain, international trade, economy, and the stock market. This research examined the effect of the US-China trade war on ASEAN stock prices using an event-study approach. The result shows that the ASEAN stock market has positive abnormal returns during pre-event period (12%). In contrast, ASEAN stock markets shifted to negative abnormal return (-7.4%) in the short-term window, indicating that the stock market is efficient. Stock price reflects the information from the market quickly. However, the impact of the trade war on the ASEAN stock market is insignificant. https://sijdeb.unsri.ac.id/index.php/SIJDEB/article/view/186ASEAN Stock MarketEvent-Study ApproachUS-China Trade War |
| spellingShingle | Budi Setiawan Does US-China Trade War Matter on ASEAN Stock Market: Event-study Approach Sriwijaya International Journal of Dynamic Economics and Business ASEAN Stock Market Event-Study Approach US-China Trade War |
| title | Does US-China Trade War Matter on ASEAN Stock Market: Event-study Approach |
| title_full | Does US-China Trade War Matter on ASEAN Stock Market: Event-study Approach |
| title_fullStr | Does US-China Trade War Matter on ASEAN Stock Market: Event-study Approach |
| title_full_unstemmed | Does US-China Trade War Matter on ASEAN Stock Market: Event-study Approach |
| title_short | Does US-China Trade War Matter on ASEAN Stock Market: Event-study Approach |
| title_sort | does us china trade war matter on asean stock market event study approach |
| topic | ASEAN Stock Market Event-Study Approach US-China Trade War |
| url | https://sijdeb.unsri.ac.id/index.php/SIJDEB/article/view/186 |
| work_keys_str_mv | AT budisetiawan doesuschinatradewarmatteronaseanstockmarketeventstudyapproach |